Mortgage rates have finally started to plateau and even dip, and that has increased the benefits of a mortgage refinance for homeowners in Washington.
When mortgage rates fall, this presents a prime opportunity for homeowners to refinance their mortgages and take advantage of much lower rates. In turn, this can save them tens of thousands of dollars or more over the duration of their mortgage.
And based on how mortgage rates trends are turning, now may be a great time to capitalize on lower rates and save by refinancing.
Homeowners in Washington Can Benefit From a Refinance
When mortgage rates are low, it might make sense to refinance. The financial benefits of refinancing can depend on several factors. The homeowner’s current mortgage rate, the rate assigned to the new loan, and the length of time you plan to say in the home all play a role.
Right now, the average mortgage interest rate for a 30-year fixed-rate mortgage is 6.61%, according to Freddie Mac.
In fact, refinancing has been so popular among homeowners when interest rates are low that lenders typically have a hard time keeping up with the demand. Although refinance activity has been sluggish lately due to rising rates, the recent dip in rates and forecasted continued downward trend in rates could boost refinance applications.
Many people with an existing home loan don’t realize what position they are in, as far as interest rates and refinancing go. Or maybe they don’t think about it at all. But when rates dip, homeowners may want to consider the opportunity to refinance to save a bundle.
If your credit or financial situation has improved since you initially took out a mortgage, you may be able to qualify for a lower rate. If so, you can refinance to potentially save quite a bit of money with a lower rate.
An Updated Look at Mortgage Rate Trends
At the same time last year, the average rate for a 30-year fixed mortgage loan was 6.42%. That’s based on the weekly industry survey conducted by Freddie Mac. Rates have been increasing steadily through the year, though they recently dipped from a peak of 7.79%.
That’s where we are now, as of late January 2024. Looking forward, some economists and analysts have predicted that rates will continue on a declining trend throughout 2024, and hit 6.1% by the end of 2024, according to the Mortgage Bankers Association (MBA).
Refinancing usually works best as a long-term strategy. There are typically closing costs involved, just as there are with a purchase loan. So the idea is to save more money over the long term than what you pay in processing / closing fees. The point at which this occurs is known as the break-even point.
If you’re a homeowner in Washington, and you’re currently paying on a mortgage loan, you owe it to yourself to look into the potential for savings. Depending on your situation, you might be one of those homeowners with an interest rate incentive to refinance.
Looking to Refinance in Washington?
If you are considering refinancing your mortgage, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We have been offering a wide variety of mortgage programs and products with flexible qualification criteria since 1992. Please contact us if you’d like to find out if you could benefit from refinancing your existing mortgage.